Jumbo lending declined in the third quarter of 2016 on a quarterly basis at some mid-sized banks, according to an analysis by Inside Nonconforming Markets. Officials at the banks suggest that the market for jumbo mortgages is still relatively strong, however, with some showing increased pipelines for originations. First Republic Bank had $2.81 billion in total mortgage originations in the third quarter of 2016, down 4.4 percent from the previous quarter. Most of the bank’s production ...

The Consumer Financial Protection Bureau recently forced “one or more lenders” to take corrective actions regarding income-verification practices for non-qualified mortgages. The CFPB said the lenders weren’t verifying borrowers’ income properly under the ability-to-repay rule. The CFPB found that some lenders offered non-QMs that allowed for “alternative income documentation” for salaried borrowers. The CFPB said the products offered by the lenders relied primarily on the assets of ...

Officials at Ocwen Financial said the nonbank is close to resolving outstanding issues with state regulators which could allow the firm to resume acquiring mortgage servicing rights. However, the non-agency servicing acquisitions market is subdued, and Ocwen is putting an emphasis on originations. Ocwen significantly increased its servicing portfolio via acquisitions until enforcement actions by state regulators limited its ability to acquire MSRs. The consent order from the ...

Are mortgage account executives overpaid?

In the next few weeks, FHA will be releasing an actuarial report to Congress regarding the health of the Mutual Mortgage Insurance Fund that could boost or weaken the argument for another mortgage insurance premium cut. In anticipation of the report, stakeholders this year have reignited the debate, preceded by the Community Home Lenders Association’s call renewing for a reduction in FHA annual premiums down to their pre-crisis level of 0.55 percent. The CHLA said...

The Department of Veterans Affairs is proposing to establish fees for originating and servicing vendee loans. Vendee loans are not veterans’ benefits and are distinct from VA-guaranteed loans, the agency clarified in a proposed rule published in the Oct. 26 Federal Register. Vendee financing is...

The Department of Veterans Affairs has proposed to allow eligible veterans to purchase less than the minimum amount of mortgage life insurance coverage required for their VA loan to help them reduce out-of-pocket costs. The proposed rule is aimed at helping VA borrowers lower their premiums and amend current VA regulations to reflect an increase in the statutory maximum amount of coverage available under the Veterans Mortgage Life Insurance (VMLI) program. The VA established...

Proposed changes to the FHA’s condominium approval rules would add approximately 7,000 condo units to the agency’s portfolio and reduce certification costs by $1 million annually, according to a Department of Housing and Urban Development analysis of the proposal’s economic impact. The boost in the agency’s condo originations would result mainly from a proposal to reinstate the “spot” loan process or “single unit approval,” which FHA eliminated in February 2010. The proposed rule would allow...

With sea levels rising and flood risks increasing, federal housing regulators are proposing new base elevation standards for all properties with an FHA-insured mortgage located in flood hazard areas. Under the Department of Housing and Urban Development’s proposed rule, elevations for “non-critical” properties would be raised two feet above the site’s base flood elevation or 100-year floodplain. The proposed rule also would revise...

The U.S. Department of Agriculture’s single-family guaranteed housing program provided $16.14 billion in guarantees to 116,684 rural housing loans during fiscal 2016, down $2.27 billion from FY 2015, according to the Housing Assistance Council (HAC). For the Section 502 direct guarantee loan program, lenders originated approximately $958.3 million in loans in FY 2016, about $58.4 million more than the previous year. Data compiled by HAC, a national nonprofit that helps build homes and communities in rural areas of the country, show...